The majority of classic car owners also own a modern vehicle. Quite often, the value of their 20-year-old classic car can exceed the value of their brand new VW Golf. In which case, why can you find that the insurance premium for the classic car is significantly lower than that of the new vehicle?
Classic cars are usually taken out for a relaxing drive
Well, insurers take a number of factors into account when it comes to insuring cars and a few of those immediately have a bearing on why the price of your classic car insurance could be lower than that of your new car.
As a general rule, it is perceived that the owner of a classic car is going to take a lot more care of it than a brand new VW Golf. For instance, if you are going to the supermarket to do some shopping you are more likely to park your classic car well away from other vehicles in case the car owner parked in the space next to you opens their door carelessly and damages your car or reverses out of the space and catches the rear wing of your vehicle.
Insurance companies also believe that the owner of a classic car is going to be careful where they park their car from a security point of view. For example, if they are going out for a drink, they are not going to just leave it parked in a dark street as it is more likely to be stolen than if it were left in the pub car park that is well lit and has CCTV cameras.
Insurance companies believe that the classic car owner will drive his car with greater care than a new car. Therefore it is less likely to be involved in an accident. Many classic cars are just taken out for a relaxing drive on a Sunday afternoon motoring along at 30 to 50 miles an hour.
The number of miles that a classic car travels each year is likely to be less than that of a modern vehicle. In fact, classic car insurance policies do place a significant restriction on the number of miles they will cover you for with the maximum often being 7,500 miles. However, it is possible to insure your classic car to do fewer miles than that thus bringing the annual premium down even further.
So, hopefully, you can now see why classic car insurance is often so competitively priced.
